Kazakhstan-based mining group Eurasian Natural Resources (ENRC) yesterday said it has acquired the remaining 50 per cent of Brazil-focussed iron ore miner Bahia Minerals BV (BMBV) that it did not already own for $670 million.

London-listed ENRC will pay $670 million to Swiss group Zamin Ferrous for acquiring the remaining 50 per cent it does not already own in Bahia Minerals BV and secured an option to buy the adjoining Greystone iron ore asset for up to $150 million.

ENRC, the world's largest ferrochrome producer, purchased its initial 50-per cent stake in BMBV from Zamin in May 2008, for $306 million in cash.

BMBV, which owns two iron ore companies, Bahia Mineracao Limitada and Eire Mineracao Limitada located in the Caetite region in the State of Bahia in Brazil, has iron ore resource base of 1,808 million tonnes with an average iron content of 32.0 per cent and 876 million tonnes with an average iron content of 28.4 per cent respectively.

Both the combined companies are expected to produce 19.5 million tonnes of iron ore annually by 2014 at a capital cost of about $2.1 billion.

Greystone Mineracao do Brasil Limitada, which holds a mineral licence adjoining the BMBV project area, has an iron ore resource base of 147 million tons with average iron content of 31.8 per cent, and an additional 187.5 million tons of potential resource.

ENRC believes that the acquisition of the remaining 50 per cent of BMBV will further enhance its access to the seaborne iron ore market and will provide it with growth in and diversification of its iron ore customer base and product suite.

The expansion of iron ore builds on the group's existing technical and market expertise in iron ore extraction, processing and sales. In addition, the realisation of the project will provide greater production volumes and earnings from iron ore, said ENRC in a statement.

ENRC, a large diversified natural resources group with its main production assets located in Kazakhstan. It has integrated mining, processing, energy and logistical operations.

The company's divisions include ferroalloys, iron ore, alumina and aluminium, energy, logistics and other non-ferrous. ENRC controls sizeable proven reserves of minerals including chromium, manganese, iron ore, bauxite coal, copper and cobalt.

The government of Kazakhstan holds 11.65 per cent stake in the company and rival miner Kazakhmys is its biggest shareholder holding a 26 per cent stake.

ENRC employs over 70,000 people and had reported revenues of $3.8 billion last year.